Hyatt Hotels (NYSE:H) CEO Mark Hoplamazian told the media on Thursday that he is bullish on a recovery in the hotel industry, driven by leisure travel, as COVID-19 vaccines become more widely available.
While bookings will continue to face headwinds over the next few months, more consumers will be confident and ready to take trips.
"We see that there’s a clear path to recovery from here," Hoplamazian said. "I am optimistic that travel will fully recover."
The hotel industry was devastated in 2020 after both business and leisure travel plummeted, in addition to international travel restrictions put in place to fight the spread of coronavirus.
Net bookings have steadily increased since the start of 2021 and occupancy rates industrywide are showing signs of rebounding. The industry occupancy rate in the last week of February was just below 50%, up from a trough of 22% in April of last year, he noted.
Chicago-based Hyatt found many of those new bookings are coming from spring break travel to resorts and destinations such as the Caribbean and Mexico. Lodging for business and meeting purposes is showing signs of recovery, while some consumers are starting to put in placeholder stays for the holiday travel season later this year, Hoplamazian said.
The travel sector was one of the parts of the economy hit worst by coronavirus-era mandates. Hoplamazian, who has led Hyatt since 2006, said it was the worst year for the business he has ever seen, adding that it was "emotionally devastating" to lay off hotel workers during the pandemic. The company announced layoffs of 1,300 people globally last May.
H shares gained 24 cents to $86.49.
